As the construction market has continued to become increasingly competitive, companies within the sector have strived to strengthen all stages within their tendering process and project delivery team.
Having a well-known name in the market is no longer the deciding factor in winning and delivering the right projects. There are 5 factors in which construction companies should consider while attracting the right project.
1. Business Development
Business development is one of the initial and key stages a company needs to consider when looking to attract and win the right project. Companies looking to attract the right projects and clients will have to engage in business developments activities through networking, marketing and maintaining relationships within the industry. Very few projects can be won without a contractor being invited to a tender. Having your name out in the market is crucial to any successful business.
Cost and pricing is a crucial element in attracting the right projects. Companies who have an established name in the market find themselves missing out on projects or attracting the wrong type of project through poor estimation. As clients within the construction market look to cut cost wherever they can, it is important that contractors invest in a strong estimation team. Overpricing projects have been one of the key reasons why companies have not passed the initial tendering stage or have been overlooked on project tenders. Having said this, it is also essential for companies not to underprice projects in order to win. This method has seen companies gain little to no profits on projects and could result in significant cash flow losses that can negatively affect the business.
Within the construction sector, companies tend to undervalue the importance of understanding your client’s requirements from a design perspective. Investing in a knowledgeable design team who can understand, interpret and deliver what a client’s vision for the project is advisable. The designers are a key to a project as they advise the client on materials and potential variations that may need to occur in the successful delivery of a project.
Depending on the size and complexity of a project, the duration of projects can fall over a period of a month or even years. Establishing a strong commercial team/quantity surveying team is vital. Certain companies within the industry can be accused of taking their foot off the gas once a project has been signed off but there are ongoing factors and complications that have made projects become stagnant or contractors being let go. Issues such as cost variations, claims, contractual negotiations, disputes and payment terms will fall under your commercial team. Having a capable commercial team who are able to negotiate and settle such matters can be imperative to the successful completion of a project.
5. Project management
Construction management can be split into a number of factors within a project cycle. Your technical team’s part to play in the successful management and delivery cannot be overstated. Once a project is ongoing, this will be the individual responsible for your document controlling, BOQ’S, site investigation and material handling and installation. The project management cycle is one of the final processes in the construction cycle however if you have a sub-par team this process can be prolonged for a significantly longer period than anticipated which can result in delays and extensions. This will affect a company’s profit margins and with the new enforcing payment penalties for such delays may also have a downfall effect on the organisation
Any additional advantage a company may use to give them an upper hand in progressing their business is always welcome. However looking inward and ensuring that your internal processes are up to standard will go along way, not only winning but delivering a project in a timely and orderly fashion.
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